An agreement between the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) and Vietnam’s leather, shoe and bag association Lefaso, has paved the way for a Vietnamese company to invest around $100 million in Bangladesh’s leather sector, according to local media reports.

The company in question was not named, but reports said LFMEAB will help it establish a factory on the outskirts od Dhaka or Chittagong. It will also assist the company in its dealings with the Bangladeshi government.

Bangladesh benefits from preferential access to a number of markets, including the EU, Japan, Canada and Australia, and the unnamed Vietnamese company is reportedly looking to tap into these benefits.